Six months after unveiling its National Energy Compact, Zimbabwe has already secured just under half of the US $9.13 billion required to end chronic power shortages — and is now courting investors to finance the remainder, Energy and Power Development Minister July Moyo told delegates at Africa Energy Week 2025 in Cape Town.
Moyo said the Compact, approved by Cabinet in March and developed with support from the World Bank, African Development Bank, and c has moved beyond paperwork into implementation. “We have achieved significant progress on funding and projects in motion,” he said. “But this is only the first half of the journey. The rest depends on new partners joining us.”
The minister cited major milestones already delivered, including the US $1 billion Hwange expansion, which added 670 megawatts to the national grid in 2023, and a US $455 million refurbishment agreement with Jindal Africa signed in September to restore Hwange’s older units. A further US $350 million hydropower extension is underway through concessional financing, while self-generation by mines and industries now contributes roughly 20 percent of total supply — a dramatic policy shift following government’s directive that heavy users install their own systems within two years.
These achievements, he said, amount to about US $4.4 billion of the total Compact target, leaving US $4.7 billion still to be mobilised through a mix of private investment, green-energy funds, and bilateral partnerships.
Related Stories
Moyo’s presentation positioned Zimbabwe as a ready-to-scale energy market offering clear incentives: tax breaks, VAT deferments, reduced licence fees, and a Government Implementation Support Agreement that shields investors from off-taker risk. “We are not selling promises,” he said. “We are inviting participation in a programme that is already building megawatts, not just megawatts on paper.”
He outlined key areas now open for participation — grid modernisation, renewable-energy expansion, battery storage, and rural electrification. Zimbabwe still has 371 unreticulated areas, nicknamed “dark cities,” that remain off-grid and are being earmarked for private-sector mini-grid development under prepaid models.
Energy analysts at the forum said the update marked an important credibility shift. “For once, Zimbabwe presented data, not declarations,” said one regional power-pool consultant. “Nearly half of the Compact is funded — that’s tangible progress in a sector often defined by plans that stall before financing.”
Moyo added that the Compact’s alignment with the Dar es Salaam Summit regional energy targets will allow Zimbabwe to play a bigger role in stabilising Southern Africa’s power network. If fully financed, the plan would raise the country’s installed capacity to 4 500 MW by 2030, end dependence on imports, and give industries consistent power for production.
“This is about powering productivity and ensuring food security,” Moyo said.
Leave Comments